Aluminum Production Hub Qinghai Issues Power Rationing Emergency Plan, But Smelters Are Unaffected For Now

In the wake of earthquake that hit Gansu province on December 18, neighboring Qinghai province, one of China’s major aluminum production hubs, has issued a Notice On Initiating Emergency Measures To Ensure Power Supply And Load Management For Earthquake Relief. According to the document, local aluminum smelters will be subject to 10% reduction in their power load during the emergency response period, equivalent to a cut of 438,000 kw of power. This translates into a reduction of 280,000 mt of annualized aluminum capacity.

SMM data shows existing aluminum capacity in Qinghai now stands at 2.83 million mt, of which 2.78 million mt is currently in operation. Our survey shows that smelters in the province are now operating normally since the local power supply shortage is not severe. We will keep a close eye on how the power supply situation in the province evolves in the future.